Need to Know: Annualised Returns Versus Internal Rates of Return
“Returns matter a lot. It’s your capital.” (Abigail Johnson) Let’s start at the beginning – Annualised returns The annualised rate of return on investment represents the average yearly return you would have received over a specified period. It expresses an...
Property: Why Do You Need an Occupancy Certificate Before You Buy?
“…there is no obligation on the [seller] to obtain an occupancy certificate and to furnish it to the [buyers]” (Extract from judgment below) Imagine this – you buy your dream home, pay for it, take transfer into your name, and move in. But then disaster strikes. The...
When to Lawyer Up
“The first thing we do is, let’s kill all the lawyers.” (Shakespeare) Shakespeare must have had an unhappy experience or two with the lawyers of his time to have one of his characters utter that threat, but the reality is that every aspect of our lives is touched at...
The Secret to Solving the Financial Rubik’s Cube? Consistency.
All it takes to excel at something – whether it’s mastering the ukulele, poaching the perfect egg or learning to solve the Rubik’s Cube – is consistent practice and dedication. John Maynard Keynes, one of the greatest economists and risk-taking investors around, took...
Zen and the Art of Financial Planning
“A resilient spirit, coupled with financial knowledge, is an unstoppable force.” (Anonymous) There’s more to this material world than meets the eye. As human beings we are all trying to gain self-awareness and instinctively value compassion, empathy, and open...
Unpacking Diversification: What Really Counts?
“Invest for the long haul. Don’t get too greedy and don’t get too scared.” (Shelby M.C. Davis) In 2021, South African investors could have made a return of 36.9% if they’d been invested in the local property index. That same year they could have made 33.1% in rands if...
Market Update: Will They, Won’t They? The Case for Lower Interest Rates Improved in March.
Light at the end of the tunnel for borrowers – and investors The interest rate hikes central banks implemented over the past two years have been so aggressive that economists have consistently warned central bankers against overdoing it and running the risk of driving...
Property Sales: “Conditional Acceptance” of an Offer is Not Acceptance, It’s Rejection
“The conditional acceptance of an offer amounts to rejection of same and not the conclusion of a contract, but may be a counter–offer.” (Extract from judgment below) A good offer comes in for your property, so you accept it. But you’re not happy with a few of the...
Budget 2024: What it means for you
“Our bigger challenge… is that our pie is not growing fast enough and this limits our ability to generate sufficient revenues to distribute among our priority areas.” (Finance Minister Enoch Godongwana – Budget 2024) Finance Minister Enoch Godongwana’s third Budget...
The Most Important Part of a Financial Plan: Room for Error
“If you don’t know where you are going, you’ll end up someplace else.” (Yogi Berra) A sound financial plan is invaluable. It looks ahead to what you want from your money and gives you a way of measuring how well you are doing in getting there. It gives you a lot of...
Market Update: Initial Investor Vote of Confidence Dissipates in Wake of Budget
Investor sentiment turns sour Investors’ initial vote on the government’s Budget was positive with the rand firming and bond yields declining. But sentiment soon turned negative once the details and ramifications of National Treasury’s decisions were fully digested....
Tax Tip: Must-Do Top Ups in February
RAs: The big one Retirement Annuities (RAs) offer significant tax breaks as contributions to the investments are tax-deductible, and the growth within the funds is tax-free. (No income, dividends or capital gains tax applies.) You can contribute a maximum of 27.5% of...